Michigan 2023-2024 Regular Session

Michigan House Bill HB6089

Introduced
11/13/24  

Caption

Retirement: state employees; annual retirement allowance increase; eliminate cap. Amends sec. 20g of 1943 PA 240 (MCL 38.20g).

Impact

If enacted, this bill would significantly impact state laws concerning the retirement benefits of public sector employees. It would allow for adjustments in the annual retirement allowance that correlates with the performance of the retirement system's investments, subjecting the increases to fewer restrictions than currently imposed. The 8% assumed interest rate will serve as a benchmark, but any return above this threshold can positively influence the distribution income, thereby benefiting current retirees.

Summary

House Bill 6089 aims to amend the State Employees' Retirement Act, specifically altering the provisions regarding the annual increase of retirement allowances for state employees. The proposed changes seek to eliminate the cap on the annual retirement allowance increase, allowing for a more flexible adjustment based on the return on investment rates realized by the retirement system. This could potentially provide retired state employees with greater financial security, especially in times of increased living costs or inflation.

Contention

Discussions around HB 6089 may evoke varied opinions among stakeholders. Supporters, particularly those advocating for state employees' benefits, may endorse the bill as a positive reform that enhances financial protections for retirees. Conversely, critics might argue that the elimination of the cap could lead to financial strains on the state budget, especially during economic downturns or when investment returns underperform. Balancing the needs of retirees with responsible fiscal management will likely be a central theme in the debates surrounding this bill.

Companion Bills

No companion bills found.

Previously Filed As

MI SB1144

Retirement: state employees; annual retirement allowance increase; eliminate cap. Amends sec. 20g of 1943 PA 240 (MCL 38.20g).

MI HB5203

Retirement: county employees; employment of retirant in a county sheriff’s office; allow without forfeiting retirement allowance. Amends sec. 12a of 1851 PA 156 (MCL 46.12a).

MI HB4471

Retirement: county employees; employment of retirant in a county sheriff's office; allow without forfeiting retirement allowance. Amends sec. 12a of 1851 PA 156 (MCL 46.12a).

MI HB4485

Retirement: county employees; employment of retirant in a county sheriff's office; allow without forfeiting retirement allowance. Amends sec. 12a of 1851 PA 156 (MCL 46.12a).

MI SB0314

Retirement: county employees; employment of retirant in a county sheriff’s office; allow without forfeiting retirement allowance. Amends sec. 12a of 1851 PA 156 (MCL 46.12a).

MI HB4815

Retirement: state employees; employment of retired state employees; allow without forfeiting retirement benefits. Amends sec. 68c of 1943 PA 240 (MCL 38.68c).

MI HB5986

Retirement: state employees; naming a special needs trust as beneficiary; allow. Amends sec. 31 of 1943 PA 240 (MCL 38.31).

MI HB4659

Retirement: state employees; naming a special needs trust as beneficiary; allow. Amends sec. 31 of 1943 PA 240 (MCL 38.31).

MI SB0497

Retirement: state employees; annuity option; provide for. Amends secs. 55, 58, 63, 63a & 69 of 1943 PA 240 (MCL 38.55 et seq.).

MI SB0262

Retirement: state employees; annuity option; provide for. Amends secs. 55, 58, 63, 63a & 69 of 1943 PA 240 (MCL 38.55 et seq.).

Similar Bills

MI SB1144

Retirement: state employees; annual retirement allowance increase; eliminate cap. Amends sec. 20g of 1943 PA 240 (MCL 38.20g).

CA SB868

State teachers’ retirement: supplemental benefits.

TX HB3347

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NJ A3980

Requires DHS to establish system to ensure distribution of funds for certain support services for General Assistance beneficiaries ceases upon beneficiary's exit from support service.

FL S0262

Trusts

NJ A4780

Establishes Veterans Assistance for Nutritional Needs Program in DHS.

NJ S3725

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CA AB1325

State teachers’ retirement.